Al Tayyar, STC, Kingdom Holding reveal profits from Careem stake sale

Saudi-based Al Tayyar Travel Group, Saudi Telecom Company and Kingdom Holding on Tuesday announced their expected profits from the sale of their respective stakes in Dubai-based Careem to Uber Technologies Inc.

Al Tayyar expects to record SAR 1.78 billion ($475 million) in gross profit of which it is likely to record SAR 1.34 billion in FY 2019 financial results, it said in a statement to Tadawul.

Read here: It's official: Uber buys ride-hailing app Careem for $3.1 bln

Al Tayyar Travel Group along with STC Ventures had led the investment of $10 million in Careem in December 2014.

Meanwhile, Saudi Telecom, which owns a direct stake of around 8.8 percent in Careem, said in a separate statement that it will be receiving nearly SAR 1.03 billion ($274 million), partly in cash and partly in Uber’s convertible notes, with the exact split depending on the final allocation at the closing of the transaction.

STC had invested $100 million in Careem in January 2017, the statement added.

In addition to the company's direct investment in the Dubai-based  ride hailing  app, the telco has invested indirectly in it through two funds - STC Ventures owns a 6.4 percent stake while Saudi Technology Ventures owns a 2.9 percent stake.

Kingdom Holding Co. also said in a bourse filing that it has sold the stake for SAR 1.25 billion ($333 million), of which it will receive SAR 565 million in cash and the remaining in convertible bonds worth SAR 685 million.  The book value of the stake was SAR 765 million, it added.

Read: Saudi billionaire Alwaleed buys stake in Dubai’s Careem

Kingdom Holding had acquired a 7.11 percent stake in Careem from Dubai-based Abraaj Group for $62 million in June 2017.